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India’s PB Fintech, the parent company of the online insurance aggregator Policybazaar, has reported a profit for the third consecutive quarter, fueled by strong performance in its insurance segment. For the quarter ending June 30, PB Fintech achieved a consolidated net profit of 601.8 million rupees ($7.2 million), a significant turnaround from a loss of 114.1 million rupees during the same period last year.
The company’s impressive performance was driven by a nearly 52% increase in revenue from operations, totalling 10.10 billion rupees. This growth was predominantly fueled by a 67% rise in revenue from its core insurance broking segment. The surge in demand for health and life insurance policies led to a 62% year-on-year increase in new premiums, underscoring the growing financial awareness among Indian consumers.
PB Fintech’s success in the insurance sector has been pivotal in maintaining profitability. The company’s diversified portfolio, which includes the online credit marketplace Paisabazaar, has benefited from the boom in insurance sales. However, the credit business faced challenges during this quarter. The sector experienced slower growth compared to the previous period due to the Indian central bank’s tightening of regulations on unsecured lending. PB Fintech disbursed credit worth 31.40 billion rupees, down from 35.42 billion rupees a year earlier.
Despite the overall positive performance in insurance, the company’s shares closed 2.6% lower before the results were announced. This reflects market caution amid ongoing challenges in the credit market. The quarterly results highlight PB Fintech’s successful transition to a more profitable insurance business while navigating the complexities of the credit sector.